Page 6 - to ALL Lessees incl. Ms.B 27-5-17_affair 2

From: Paul B_C studio@graffiti.biz
Subject: Date: To:
Re: Mitre House - Appointment Of A Manager Affair_2
27 May 2017 at 12:37
Sigg - Hillgarth Michele mhillgarth@gmail.com, Aneeza Hak aneezahak@yahoo.com, Karupiah Segar segar_9@hotmail.com , Leoni-Sceti Maria mleonisceti@gmail.com, Riad Samya riadsf@gmail.com, Raja Jamil info@jraja.co.uk,
Brown-Constable Paul studio@graffiti.biz, Leigh-Pemberton Christopher clp@sw12group.com, Fortunati Diego & Susanna diegoxfortunati@gmail.com, Bruce R. Maunder Taylor brmt@maundertaylor.co.uk
Any lessee who prefers NOT to receive these “Manager Affair” emails, please advise and they will cease to be copied to you - at present it is a requirement of the court procedure that everybody involved has to be advised of all and any communication unless expressly requested NOT INTERESTED. So let me know.
Dear Michele -
Many thanks for your prompt response to my email of 25 May, but you do not address the issue of anticipated costs to the Service Charge account if indeed a court appointed Manager is the outcome on 27 June 2017. You are also not correct in your stated assumption that you are "requesting the Court to appoint a managing agent.”
To quote from Maunder Taylor’s excellent analysis of case reports they have been involved in, I would refer you to some relevant information in their report:
1) The Proposed Manager
For the proposed Manager (a. person not a firm), the responsibilities are likely to extend not only to be personally responsible for the service charge management function, but also to resolve the management faults identified in the S.22 Notice. Experience indicates that various parties do not appreciate the levels of responsibility being contemplated and the main opportunity for the proposed Manager to communicate that (as well as to himself, his partners, and his insurers) is to accurately describe them in a management plan.
You will note "the proposed Manager (a person not a firm)"
2) Manager's Fees
The proposed Manager will be asked for a fee quotation. If the Order is made, the relevant fees
will be built into the Order. A fee quotation should be provided to the applicants detailing: (the relevant query in my 25 May email but not advised until 27 June)
a) What fees the proposed Manager will charge for his involvement in the application and hearing because those pre-Order fees will be the liability of the applicants and will not
be a service charge cost. (I appreciate that this cost is of nobody’s business but yours)
b) What fees the proposed Manager will charge for the function of managing agent (usually as described in the RIOS Code). (the relevant query in my 25 May email)
c) What additional income the proposed Manager expects for work outside the normal
function of the managing agent — e.g., major works, insurance, etc. (the relevant query in my 25 May email)
d) On what basis the proposed Manager will charge for further work (if any) which, on the one hand is outside the normal managing agent’s duties, on the other hand is particular to resolving the S22 faults in this specific building- e.g., involvement in Tribunal and Court cases, etc. (the relevant query in my 25 May email)
3) An example of Maunder Taylor fees charged to the Service Charge account in the case no: LON/00BK/2013/0015)
Fees:
17. Fees for the above mentioned management services (with the exception of supervision of major works) would be a fee of £15,000 plus VAT per annum for the Premises for the first 12 months of the appointment. Thereafter the fee shall reduce to £10,000 plus VAT per annum.
18. An additional charge shall be made in relation to the arrangement of major works (including the preparation and service of any statutory consultation notices) on the basis of a fee of 1% of the cost of the works plus VAT.
19. An additional charge shall be made in relation to the arrangement, claims handling and brokerage of insurances for the Premises, public liability, engineering and employee cover on the basis of a
fee of 15% of the insurance premium.
20. An additional charge for dealing with solicitors’ enquiries on transfer will be made in the sum not